Economic Changes

AIMS- reduce unemployment and to make Germany self-sufficient (ready for war->Autarky) Were they successful? -> Initially successful - Schacht was minister of the economy, his 'new plan' was successful. Imports went down, production went up b 50% and Germany traded goods for raw materials (eg coal, oil) 1937 onwards -> failure - Goring had a 4 year plan to prepare Germany for war. Needed guns, tanks, planes, submarines etc. This is called Rearmament. Made weapons but: failed in becoming self sufficent eg for fuel, clothing and were food shortages and rationing.
UNEMPLOYMENT - Aim - to reduce unemployment from 6 million in 1933. By 1939, unemployment was down to 1/2 million. How?
1. Job Creation Schemes - Built a network of motorways known as Autobahns, covering 7000 km, invested money in the car industry, invested in private firms, built huge public buildings for example an Olympic stadium for the 1936 Olympics.
2. Invisible Unemployment - Jews lost their jobs, Women were forced to leave their jobs to marry, opponents of Nazism eg communists, Unemployment figures did not include a number of groups who lost their jobs or those without proper jobs, unmarried men were forced to serve 6 months in the national labour service (under 25), people with no jobs but didn't count in the figures are invisible unemployment.
3. RAD/National Labour Service - made compulsory to all men aged 16 to 25, general labour, men built autobahns and costal walls and also drained marshes for farming, workers paid very low wages and had to put up with uncomfortable tented camps, long hours and boring jobs.
4. Rearmament and the armed forces - allies didn't reduce army figures, people worked in new factories making weapons and more jobs as more money is being spent building weapons.
Workers better off under Nazi rule: Young people who could work quicker and higher wages. Worse off: Older people who worked slower, longer hours, inflation meant that workers could not afford more goods, food shortages.
Nazi methods to control workers and keep them happy... 1) The Labour Front - DAF (replaced workers unions, encouraged team spirit, represented workers in discussions with employers, achieved little.) Ran/Organised: A) Strength through Joy - Events to keep workers happy eg sport, holidays and cruises, concerts, theatre performances, weekend trips. B) The Beauty of Labour - Another scheme to keep workers happy. It: built canteens for workers, swimming pools/ sports facilities, better factories (less noise) BUT workers were expected to make these improvements themselves. C) Volkswagen (Peoples car) - Workers contributed 5 marks per week for their car BUT none were delivered.
IMPROVEMENTS: The beauty of Labour department improved working conditions, Workers enjoyed the activities offered through the strength of joy movement, Job creation schemes ensured most people had jobs, average weekly wage rose and there was lots of activities provided for workers. WORSE OFF: Many of the jobs were not proper jobs: it was forced labour and workers had no choice, if they refused to work they got no benefits, Few workers could afford the more expensive activities offered through the strength of joy scheme, Industrial accidents and illness rose by 150% in the period 1933-39, The activites provided for the workers were just bribes to make workers do as they were told and the cost of living rose and cancelled out the increase in wages.
Farmers - Better prices, loans cancelled but struggled to find labour eg at harvest, Shopkeepers/small businesses - better off, Nazis limited the number of large department stores, Big businesses - benefitted, no trade unions to challenge them, big profits especially in armament factories. Managers wages went up 70% in 4 years.

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Economic Changes

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